Border divides fiscal outlook yet neighbours share home country bias finds the Franklin Templeton Global Investor Sentiment Survey
TORONTO, May 15, 2012 /CNW/ - Canadians are decidedly more upbeat about the local economy and the investment climate than Americans, a poll by Franklin Templeton Investments has found.
In its latest global survey of investor sentiment, Franklin Templeton reports 50 per cent of Americans believe their local economy has deteriorated, a view shared by only 28 per cent of Canadians when asked about Canada's economy. When asked about the economic outlook for the next one to three years, 41 per cent of Americans have a pessimistic view versus 27 per cent of Canadians.
Canadians are more bullish when it comes to the investment climate too. The survey found 41 per cent of Canadians predict positive returns in the current market environment; whereas, 37 per cent of Americans shared this positive outlook. Americans were more pessimistic with 26 per cent forecasting negative returns compared with 14 per cent of Canadians. When asked about specific asset classes, Americans were more likely to predict losses in 2012 for stocks and bonds compared to Canadians.
"Franklin Templeton's latest investor research has found more confidence north of the border," said Don Reed, president and chief executive officer of Franklin Templeton Investments Corp. in Toronto. "Canadians have had more to cheer about in recent years than Americans. Our economy and stock market has improved smartly from the lows of 2009 while the U.S. has had a more challenging recovery."
Conducted earlier this year, the Franklin Templeton Global Investor Sentiment Survey (https://www.franklintempleton.ca/ca/retail/en/pdf/products/sales_tools/global_sentiment_survey.pdf) polled more than 20,000 individuals in 19 countries that represent 70 per cent of the world's GDP.1 The survey provides a unique snapshot of global sentiment and attitudes at a critical juncture in the market cycle.
Despite their differing outlooks on fiscal issues, Canadians and Americans share a strong home country bias. Sixty-five per cent of Canadians and 63 per cent of Americans will invest in their own country this year. Half of Canadians and Americans surveyed also believe their home country will offer the best returns.
"Global uncertainty has left investors cautious with almost four in 10 investors around the world believing their home country represents the best investment opportunity," said Mr. Reed. "It's important for investors to work with a financial advisor and ensure they are well diversified by asset class and geography to limit risk and meet financial goals."
The 2012 Franklin Templeton Global Investor Sentiment Survey included responses from 20,623 individuals in 19 countries: Brazil, Chile, Mexico, Canada and the United States in the Americas; Australia, China, Japan, Hong Kong, India, Malaysia, South Korea and Singapore in APAC; and Belgium, France, Germany, Italy, Poland and the United Kingdom in Europe. The survey was designed in partnership with Dan Ariely, a professor of psychology and behavioral economics at Duke University, and conducted online by Qualtrics. Respondents were selected from among those who have volunteered to participate in online surveys and polls and all were 18 years of age or older. Surveys were completed from January 30 to February 13 in all countries except Canada where the survey was completed from March 2 to 8. In general, gender distribution was representative of the larger population of each country, as were marital status, education and age.
About Franklin Templeton
Franklin Resources, Inc. [NYSE:BEN] is a global investment management organization operating as Franklin Templeton Investments. Franklin Templeton Investments provides global and domestic investment management solutions managed by its Franklin, Templeton, Mutual Series, Fiduciary Trust, Darby and Bissett investment teams. The San Mateo, CA-based company has more than 60 years of investment experience and approximately US$726 billion (Cdn$717 billion) in assets under management as of April 30, 2012. For more information, please visit www.franklintempleton.ca.
This material does not constitute investment advice or an invitation to apply for securities. Investors should seek professional financial advice and obtain a full explanation of any proposed investment before making a decision to invest. Investments involve risks. The value of investments can go down as well as up, and investors may not get back the full amount invested.
- Source: International Monetary Fund, World Economic Outlook Database, September 2011. Gross domestic product figure based on purchasing-power-parity (PPP) share of the world total.
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Copyright © 2012. Franklin Templeton Investments. All rights reserved.
Image with caption: "2012 GLOBAL INVESTOR SENTIMENT POLL: RESULTS FOR CANADA VS. US (CNW Group/Franklin Templeton Investments Corp.)". Image available at: http://photos.newswire.ca/images/download/20120515_C7122_PHOTO_EN_13634.jpg
Image with caption: "View of local economy: Americans more pessimistic than Canadians (CNW Group/Franklin Templeton Investments Corp.)". Image available at: http://photos.newswire.ca/images/download/20120515_C7122_PHOTO_EN_13635.jpg
Image with caption: "Expected return in 2012 market: Americans have more negative outlook than Canadians (CNW Group/Franklin Templeton Investments Corp.)". Image available at: http://photos.newswire.ca/images/download/20120515_C7122_PHOTO_EN_13636.jpg
For further information:
Keith Damsell, Corporate Communications, Franklin Templeton Investments, 416.957.6099
Sarah Kingdon, Corporate Communications, Franklin Templeton Investments, 416.957.6191
Debra Chan, Argyle Communications, 416.968.7311 ext. 229